Many Nebraska auto dealers say they only learned about the changes in state law concerning advertising content after they were fined for violations in 2004.

Eric Knudtson, general manager of Lincoln Auto Plaza Suzuki in Lincoln, Neb., said letters were sent in September 2004 notifying dealers of the changes, but were so vague it was difficult to determine who was affected, reported the Auto Auction Shopper.

The state’s department of motor vehicles’ licensing board fined Brian Gibbs, owner of Sunset Motors in Omaha, Neb., $2,000 for claims made in newspaper ads.

“We got into trouble when an ad in the Omaha World Herald contained the phrase ‘we will beat any deal,’” Gibbs said. “It was deemed false and misleading. You can’t say things like you have the lowest prices on the block anymore.”

According to Knudtson, about 200 car dealers have been fined under the new law. The law also applies to other retail businesses, such as furniture stores.

Keith Whann, attorney for the National Independent Automobile Dealers Association, told the Auto Auction Shopper that dealers need to get ahead of the problem.

“With the tough economy most states face, officials are looking for new sources of revenue,” Whann said. “This is one way to get money without raising taxes. The problem is with tough times, dealers also get more aggressive with their retail operations, and that can mean trouble if they don’t get the language in their ads right.”

0 Comments